Strong bookings, a higher‑than‑expected diesel mix, and broad variant demand prompt a phased capacity expansion of the mid‑size SUV.
13 Jan 2026 | 405 Views | By Darshan Nakhwa and Ketan Thakkar
Tata Motors Passenger Vehicles Ltd will ramp up production capacity of its recently launched mid-size sport utility vehicle, Sierra, in a phased manner over the next six months to meet strong demand, Managing Director and Chief Executive Officer Shailesh Chandra said.
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Tata Motors Passenger Vehicles Ltd will ramp up production capacity of its recently launched mid-size sport utility vehicle, Sierra, in a phased manner over the next six months to meet strong demand, Managing Director and Chief Executive Officer Shailesh Chandra said.
Autocar Professional has learnt that Tata Motors PV is expected to ramp up monthly production capacity of the Sierra to around 15,000 units by March 2026, positioning the SUV to contribute incremental volumes of over 1.5 lakh units annually once capacity stabilises.
“People are in love with the design of the car (Sierra) and the feature set that we have given. People are also liking the multiple powertrain options,” said Chandra. “We are overwhelmed. Overwhelmed, not in a negative sense, but in a positive sense to get this kind of demand.”
The demand response, he said, has necessitated a calibrated scale-up in manufacturing. “It means that we have to ramp up the capacity accordingly. So there is a phased approach to increase the capacity in the next six months…to ensure that we fulfill the demand that we have generated…It will start from this month onwards,” he added.
Diesel Surprise
Chandra said the initial fuel mix has thrown up a few surprises, particularly on the diesel side. “In terms of fuel variant split, it was a pleasant surprise to see that diesel is getting more than what we anticipated. Typically, in this segment, diesel penetration is about 35%. We are more like 35-50%. But at the time of launch, there is always some noise. We'll see where it's taking us.”
Petrol variants are also seeing healthy traction, with both naturally aspirated (NA) and turbocharged GDI engine variants contributing meaningfully. “GDI is also getting good traction. NA was assumed to get a very strong response,” Chandra said. Between the two engine options, the naturally aspirated SUV variant currently accounts for the higher share of volumes.
The company is also seeing demand spread evenly across the portfolio. “There's very good equitable distribution going from mid, top, as well as for entry variants,” he said, suggesting that the Sierra is not skewing heavily toward either entry-level or fully loaded trims.
Bookings Momentum Sets the Tone
Tata Motors launched the Sierra in November last year, positioning it as a premium mid-size SUV. On the opening day of bookings in December, the automaker recorded over 70,000 confirmed bookings, with an additional 1.35 lakh customers submitting their preferred configurations as they moved toward completing booking formalities.
The Sierra is offered with three powertrains: a 1.5-litre Kryojet diesel, a 1.5-litre TGDi Hyperion petrol, and a 1.5-litre naturally aspirated Revotron petrol. Prices start at ₹11.49 lakh and extend to ₹21.29 lakh for the top Accomplished Plus variant.
The model marks the return of the Sierra nameplate more than three decades after its original debut, blending retro design cues with modern technology. Built on Tata’s ARGOS (All-Terrain Ready, Omni-Energy and Geometry Scalable) architecture, the platform is designed to support multiple body styles and powertrains.
The Sierra sits in a highly competitive mid-size SUV segment, where it goes up against established players such as the Hyundai Creta, Kia Seltos, Maruti Suzuki Grand Vitara and Honda Elevate. Within Tata Motors’ own lineup, it is positioned between the Curvv and the Harrier.
Tata Motors has indicated that the Sierra platform could spawn additional derivatives over time, including a seven-seater and an all-wheel-drive version, though timelines have not been confirmed. A pure electric Sierra is planned for launch within six months of the internal combustion engine version.
Deliveries of the Sierra are scheduled to begin on January 15. As production ramps up over the coming months, Tata Motors will be looking to convert early booking enthusiasm into steady retail momentum in a segment currently dominated by the Hyundai Creta.